Article 1.  These Codes of Ethics is formulated in accordance with the  Basic Government Auditing Standards of the People's Republic of China  for the purpose of standardizing professional ethical conduct of auditors.

Article 2   The term " professional codes of ethics for auditors" mentioned herein refers to the standards of professional conduct to be observed by auditors of audit institutions in their performance of audit.

Article 3  Auditors shall observe these Codes of Ethics, strengthen their ethical education, conscientiously abide by disciplines, ensure audit quality and improve audit work.

Article 4   These Codes of Ethics for auditors shall include the following major contents:
(1)To uphold the Four Cardinal Principles*, serve the people wholeheartedly and be loyal to their duties and diligent in their work;
(2) To study hard, renew the existing knowledge, combine theory with practice, strive to make progress, possess the professional expertise and competence corresponding to the audit work they are engaged in;
(3) To abide by state laws and regulations and conduct audit work according to the law;
(4) To exercise due professional care, be objective, fair and practical in handling audit items;
(5) To withdraw from performing audit where auditors have interests involved in the audited bodies or audit items;
(6) To be obliged to safeguard state secrets and the audited bodies' trade secrets acquainted in the course of audit;
(7) To abide by regulations on building clean and diligent governments, observe audit disciplines, be honest and self-disciplined and devoted to audit work;
(8) To be modest and prudent, treat others as equals and create a reputable image.

Article 5  Auditors shall observe the following disciplines in performing their duties and responsibilities:
(1) In the course of audit, auditors shall not attend banquets held by the audited bodies or banquets that may impair fair performance of their duties;
(2) Auditors shall follow the local standards of board and lodging when they are on inspection tours to or conducting investigations in other places or their subordinate institutions;
(3) Auditors shall not attend recreational activities paid for with public funds in commercial public entertainment centers;
(4) Auditors shall not accept invitations for ceremonial activities held by interest parties unless due approval is obtained from competent leaders of their audit institutions;
(5) Auditors shall not extort or take bribes, or exploit their powers for personal gains;
(6) Auditors shall not conceal audit findings concerning acts of the audited bodies which are in violation of relevant economic and financial laws and regulations.

Article 6  Audit institutions shall strengthen professional discipline and ethical education of auditors and shall supervise and inspect their auditors' observation of these Codes of Ethics.

Article 7   Where auditors violate these Codes of Ethics, audit institutions shall, in accordance with the seriousness of the cases, either criticize and educate the concerned auditors or impose appropriate administrative or disciplinary sanctions on such auditors.

Article 8  The authority to interpret these Codes of Ethics rests with the CNAO.

Article 9  These Codes of Ethics shall come into effect as of January 1, 1997.


* The Four Cardinal Principles are to keep to the socialist road, uphold the people's democratic dictatorship, uphold the leadership of the Communist Party of China and uphold Marxism-Leninism and Mao Zedong Thought.